exchange Archives - Steinlage Insurance Agency

The most recent trend in employer based health coverage has been to cancel the company policy and leave employees to buy individual policies sold through the ACA’s online exchange, so long as the companies pay the relevant taxes and penalties. Many employers who opt away from employer coverage can give workers raises to go out and buy individual policies on the exchanges, as long as the money is taxed as income. An employer can give additional taxable cash to employees, without regard as to whether the employee used the money to buy coverage on the exchange or not. The latest restriction from the IRS essentially prohibits employers from giving workers tax-free subsidies to buy policies in the online marketplaces/exchanges. However, the law allows for employers to give pay bumps and higher salaries so long as the increased pay is taxed. The current law states that if an employer has fewer than…